Our local playground had Summer attendants [college girls] who supervised the swings, slides, merry-go-rounds, etc. They were paid by the City, and had weekly craft projects. Making keyfobs out of colored cord was one of them...I forget the name...Boondoggles???...
Anyway, you have a children's project. No German craftsman ever did such sloppy work [Swastika on the snap and the burned eagle]. I don't have the faintest idea what it's for, but I'll bet all the money in my pockets that it's a 'fake'.